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Picture: BLOOMBERG/DAVID PAUL MORRIS
Picture: BLOOMBERG/DAVID PAUL MORRIS

Tokyo — Japan’s Panasonic Holdings raised the full-year earnings forecast for its energy unit, which supplies batteries to Tesla, on stronger sales of energy storage systems and improved profitability at its US battery plant.

Panasonic raised the battery segment’s full-year outlook by 14% to ¥124bn ($798.35m) after it reported a 39% year-on-year operating profit increase in the third quarter for the unit.

The unit’s rosy result so far this year was spurred by an uptick in sales of energy storage systems and lower material prices, along with improved profitability in its in-vehicle business in North America.

Those factors helped offset an overall decrease in automotive battery sales which led to reduced production in Japan and ramped-up costs for two facilities, a new US battery plant and a renovated factory in Japan’s Wakayama prefecture.

Panasonic Energy operates a plant in the US state of Nevada that provides batteries to Tesla. It plans to open a second US plant in Kansas this year as it enlarges its footprint in North America.

Third-quarter operating income for the key segment rose to ¥42bn ($270.46m), Panasonic said in financial materials. The company also retained its full-year profit forecast for its group’s entire business at ¥380bn.

Panasonic competes with other Asian battery makers such as China’s CATL and South Korea’s LG Energy Solution, which said last month it planned to slash capital expenditure by up to 30% this year on slowing EV demand growth.

Reuters

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